November 20, 2018 | AtoZ Markets
Euro dropped quickly close to 1.14 from 1.1470 in the early hours of the London session. Will the bullish trend from 1.1215 continue? The following give insights based on Elliott wave theory.
The bullish trend from 1.1215 continued yesterday with a break above 1.14. Today, price hit 1.1470 before dropping back close to 1.14. The US-China trade deal is not nearing completion while the Italy-EU face-off still remains a major concern. German PPI for October met expectation at 0.3% increase. Euro seems to be close to a minor bearish correction before it would continue upside.
EURUSD Elliott Wave Analysis and Important Price Levels
EURUSD is expected to have completed the year-long bearish impulse wave at 1.1215 with an ending diagonal, last week. The big upsurge from 1.1215 was expected from technical analysis point of view. The rally from 1.1215 is expected to be a big bullish corrective move which could extend to 1.2 into the first quarter of 2019. In the last update, we looked at the year-long bearish move and the wave analysis of the current rally from 1.1215. The rally was expected to break above 1.14 and out of the ending diagonal pattern. How has price moved and what is could happen next?
From 1.1215, price is exhibiting the properties of an impulse wave. A dip toward 1.14 after the bridging of the upper line of the diagonal 5th (as expected in the last update) has already started. Unless a break below 1.135 happens, price is expected to continue above 1.14 up to 1.15-1.155 before the next big dip happens.
Do you have a different scenario? Please share with us in the comment box below.